Mtg Interest Rates Increasing What Does It Mean To Me In Dollars And Cents

Mortgage Interest Rates increasing, What does it mean to me in dollars and cents ?

Recentstockmarketdrop was reaction to anticipation of quicker interest rate increases, see excerpt from The New York Times 2/6/18

How Deep Is the Hole the Stock Market Just Stepped In? Whatstarted this panic?

Nearly all the economic news has been good in recent weeks, but in the often-neurotic world of investing, the news has perhaps been too good. Two reports last week that wages are growing at a solid pace, for instance, helped prompt the latest selling. Investors fear that an increase in wages, especially at a time of low

unemployment, might lead to higher inflation, which in turn could prompt the Federal Reserve to increase interest rates more quickly than expected.

Higherinterest rates result in higher monthly mortgage payment or if you are limited to a specific monthly payment amount then a reduction in the loan amount/cost of home you can qualify for.

Each 0.25% increase in interest rate, the monthly payment goes up approximately $21 per month for a $150,000 loan, goes up $50 per month for a $350, 000 loan. If the monthly payment you qualify for can not be increased then the loan amount/purchase price you qualify for will decrease by $4,000 (ex. $150,000 to $146,000), at higher loan amounts the decrease is around $10,000 (ex. $350,000 to $340,000). (No other factors affecting your rate qualification are included). Interest rates have already moved up around 0.75% since last year and we could see another 1.0% or more this year. However rates currently are still historically low. Consider taking advantage while you can, buyers to keep mortgage cost down, sellers so more buyers can qualify at your price point.

Figures above are approximations based solely on a standard math calculation of monthly principle and interest using a 30 year amortization and do not included any other factors that affect your qualifying interest rate. Don Rochelle and EXP are not acing in capacity as a mortgage brokers or financial advisers, these estimates should be discussed and verified with your mortgage and finance professionals and are presented only to assist you with approximating how interest rate changes can affect you when purchasing a home.

Don Rochelleâ€™s extensive real estate experience started upon getting a Masters in Business Administration with an emphasis in real estate in the 80â€™s and working in commercial real estate in Texas....

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Information provided Courtesy of San Antonio Board of Realtors. IDX information is provided exclusively for consumers' personal, non-commercial use and may not be used for any purpose other than to identify prospective properties consumers may be interested in purchasing. Information is believed to be accurate but not guaranteed. Provided courtesy of the San Antonio Board of Realtors. Copyright 2018 San Antonio Board of Realtors, All Rights Reserved. Data last updated February 21, 2018 10:40 PM